Global Oil News

_Warships from three nations call Iran's bluff in the
GulfJanuary 24, 2012 THE United States, Britain and
France delivered a pointed message to Iran, sending six warships led by an
aircraft carrier through the sensitive waters of the Strait of Hormuz.The deployment challenged Iranian
threats to close the waterway and coincided with an escalation in the West's
confrontation with Iran over the country's nuclear ambitions.European Union foreign ministers
were expected to announce an embargo on Iranian oil exports overnight,
amounting to the most significant package of sanctions yet agreed.They are also likely to impose a
partial freeze on assets held by the Iranian Central Bank in the EU. Tehran has
threatened to block the Strait of Hormuz, where tankers carrying 17 million
barrels of oil pass through every day, in retaliation.The USS Abraham Lincoln, a
nuclear-powered aircraft carrier capable of deploying 90 aircraft, entered the
Gulf without incident.All three countries retain a
permanent military presence in the Gulf, but a joint passage through the Strait
of Hormuz by all their respective navies is highly unusual. The flotilla will
have passed within a few miles of the Iranian coastline.Source: Telegraph

_23 January 2012 EU Iran sanctions: Ministers adopt Iran oil imports
banEuropean Union foreign ministers
have formally adopted an "unprecedented" oil embargo against Iran
over its nuclear programme, banning all new oil contracts with the country.They also agreed a freeze on the assets of Iran's
central bank in the EU.The EU currently buys about 20% of
Iran's oil exports. There was no official Iranian
reaction, but one Iranian lawmaker played down the decision, calling it a
"mere propaganda gesture".Iran had "failed to restore
international confidence in the exclusively peaceful nature of its nuclear
programme", British Prime Minister David Cameron, French President Nicolas
Sarkozy and German Chancellor Angela Merkel said in a joint statement. "We will not accept Iran
acquiring a nuclear weapon. Iran has so far had no regard for its international
obligations and is already exporting and threatening violence around its
region," the leaders added.The measures were "another
strong step in the international effort to dramatically increase the pressure
on Iran," US Treasury Secretary Timothy Geithner and Secretary of State
Hillary Clinton said in a statement welcoming the move.Meanwhile, the International Atomic
Energy Agency, the UN's nuclear watchdog has confirmed it is sending a team to
Iran between 29 and 31 January "to resolve all outstanding substantive
issues". Last November the IAEA said in a
report that it had information suggesting Iran had carried out tests
"relevant to the development of a nuclear explosive device" -
sparking the decision by the US and EU to issue tougher sanctions.Tehran insists its nuclear programme
is for energy purposes.Earlier on Monday, the Pentagon said
the US aircraft carrier USS Abraham Lincoln, as well as a British Royal Navy
frigate and a French warship, had passed through the Strait of Hormuz at the
entrance to the Gulf without incident, in the wake of Iranian threats to block
the trade route.'Substantial impact' The EU said the sanctions prohibit
the import, purchase and transport of Iranian crude oil and petroleum products
as well as related finance and insurance. All existing contracts will have to
be phased out by 1 July.Investment as well as the export of
key equipment and technology for Iran's petrochemical sector is also banned. Additional restrictions have been
placed on Iran's central bank and in the trade of gold, precious metals and
diamonds. BBC Europe Editor Gavin Hewitt says
it is one of the toughest steps the EU has ever taken.EU foreign policy chief Catherine
Ashton said the purpose of the sanctions was "to put pressure on Iran to
come back to the negotiating table". Earlier, UK Foreign Secretary
William Hague said the embargo showed "the resolve of the European Union
on this issue"."It is absolutely right to do
this when Iran is continuing to breach United Nations resolutions and refusing
to come to meaningful negotiations on its nuclear programme," he added.But the Russian foreign ministry
said it was a "deeply mistaken" move that would not encourage Iran to
return to the negotiating table."It's apparent that in this
case there is open pressure and diktat, aimed at "punishing"
Iran," it said in a statement.Ali Adyani, a member of the Iranian
parliament's energy commission, was quoted by the semi-official Fars news
agency as saying the EU decision "would only serve some American and
European politicians"."It will not have any effect on
Iran's economy," he said, adding that Tehran could sell oil to "any
country" despite the ban.Rising tensions BBC Iran correspondent James
Reynolds says oil is the country's most valuable asset and sales help to keep
the Iranian government in money and power.A decision by the EU to stop buying
from Iran may damage the Iranian economy - but in itself it won't destroy it,
our correspondent says.Iran sells most of its oil to
countries in Asia. The EU and the United States are now working to persuade
Asian countries to reduce their purchases from Iran as well.Iran has already threatened to
retaliate by blocking the Strait of Hormuz at the entrance to the Gulf, through
which 20% of the world's oil exports pass.The US has said it will keep the
trade route open, raising the possibility of a confrontation.Late last year Iran conducted 10
days of military exercises near the Strait of Hormuz, test-firing several
missiles.Oil prices have risen already
because of the increasing tension and the expected impact of an EU ban on oil
supplies to Europe.Source: BBC

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